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Q3 Ingredients, Flavors & Fragrances Earnings: Darling Ingredients (NYSE:DAR) Earns Top Marks

DAR Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at ingredients, flavors & fragrances stocks, starting with Darling Ingredients (NYSE: DAR).

Ingredients, flavors, and fragrances companies supply essential components to food, beverage, personal care, and household product manufacturers. These firms develop proprietary formulations that enhance taste, scent, and texture, creating customer stickiness through specialized expertise and regulatory-approved ingredient portfolios. Tailwinds include growing consumer demand for natural and clean-label products, expansion in emerging markets, and innovation in plant-based and functional ingredients. However, headwinds persist from volatile raw material costs, particularly for agricultural and petrochemical inputs. Regulatory scrutiny over synthetic additives and fragrance allergens poses compliance challenges, while consolidation among major customers increases pricing pressure and negotiating leverage against suppliers.

The 5 ingredients, flavors & fragrances stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 2.5%.

Luckily, ingredients, flavors & fragrances stocks have performed well with share prices up 10.3% on average since the latest earnings results.

Best Q3: Darling Ingredients (NYSE: DAR)

Turning what others consider waste into valuable resources, Darling Ingredients (NYSE: DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.

Darling Ingredients reported revenues of $1.56 billion, up 10% year on year. This print exceeded analysts’ expectations by 4.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

Darling Ingredients Total Revenue

Darling Ingredients scored the biggest analyst estimates beat of the whole group. The stock is up 27.4% since reporting and currently trades at $39.66.

Is now the time to buy Darling Ingredients? Access our full analysis of the earnings results here, it’s free.

International Flavors & Fragrances (NYSE: IFF)

Responsible for the scents in your favorite perfumes and the flavors in your daily snacks, International Flavors & Fragrances (NYSE: IFF) creates and manufactures ingredients for food, beverages, personal care products, and pharmaceuticals used in countless consumer goods.

International Flavors & Fragrances reported revenues of $2.69 billion, down 7.9% year on year, outperforming analysts’ expectations by 2.1%. The business had a strong quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

International Flavors & Fragrances Total Revenue

The market seems happy with the results as the stock is up 12.1% since reporting. It currently trades at $68.95.

Is now the time to buy International Flavors & Fragrances? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Ingredion (NYSE: INGR)

Known for its ability to turn ordinary corn into thousands of different food ingredients, Ingredion (NYSE: INGR) transforms grains, fruits, vegetables and other plant-based materials into specialty starches, sweeteners and other ingredients for food, beverage and industrial markets.

Ingredion reported revenues of $1.82 billion, down 2.9% year on year, falling short of analysts’ expectations by 4%. It was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ revenue estimates.

As expected, the stock is down 1% since the results and currently trades at $112.94.

Read our full analysis of Ingredion’s results here.

Bunge Global (NYSE: BG)

With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE: BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients.

Bunge Global reported revenues of $22.16 billion, up 71.6% year on year. This print missed analysts’ expectations by 13.3%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ revenue estimates.

Bunge Global pulled off the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 7.5% since reporting and currently trades at $100.91.

Read our full, actionable report on Bunge Global here, it’s free.

Archer-Daniels-Midland (NYSE: ADM)

Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE: ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications.

Archer-Daniels-Midland reported revenues of $20.37 billion, up 2.2% year on year. This number came in 2% below analysts' expectations. Aside from that, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ gross margin estimates.

The stock is up 5.7% since reporting and currently trades at $62.35.

Read our full, actionable report on Archer-Daniels-Midland here, it’s free.

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